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Freeze on fuel prices: Back to square one
May 09: Forthcoming state elections and a pointed attack by former Prime Minister Manmohan Singh, who claimed that instead of passing on the benefits of low prices to the people, the Modi government has instead punished them, may permanently stymie the daily adjustment of fuel prices until the next general elections.
8Marketing margins of oil marketing companies have already turned negative and share prices have corrected
8But the worse is yet to come. When the LPG and kerosene subsidy budgets wear off, the OMCs are likely to end up bearing the burden
8Will upstream companies be spared? They will be, for the time being, it seems.
8Spinoff effects are likely on private sector fuel outlets too because sales will fall as OMCs will be forced to sell diesel and petrol at lower prices. This goes to show that private sector retail in India is a zero sum game.
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